US-based neuropsychiatric disorder drug developer Karuna Therapeutics closed a series B round featuring pharmaceutical firm PureTech Health and Pivotal BioVenture Partners, the healthcare investment firm formed by property developer Nan Fung, at $80m on Monday.
Venture capital firm Sofinnova Investments added $12m to the $68m initially raised by Karuna last month, and is taking a observer seat on Karuna’s board of directors in connection with its investment. The final close includes $5m of debt converted into equity.
The first close included Alexandria Venture Investments, life sciences real estate investment trust Alexandria Real Estate Equities’ VC unit, as well as Arch Venture Partners, Fidelity Management & Research Company, Eventide Asset Management, Partner Fund Management, Wellcome Trust and Sands Capital.
Karuna is developing therapies for neuropsychiatric conditions including Alzheimer’s disease-related psychosis. It expects to get results from a phase 2 clinical trial for its lead drug candidate, KarXT, a treatment for acute psychosis in schizophrenia patients, later this year.
Steve Paul, chairman and CEOof Karuna, said: “We are grateful for the support of all our investors who share our commitment to developing and delivering novel therapies to patients with disabling neuropsychiatric disorders.”
The company had previously received $42m in an August 2018 series A round featuring pharmaceutical firm PureTech Health, Arch Venture Partners, Wellcome Trust and private investor Steven Paul, and which included $22m of debt converted into equity.
